Austex signs gas gathering contracts

AusTex has entered into two additional gas contracts for the purchase of its gas from parts of its Area II (south east) and Area III (north west) acreage. The new contracts were entered into after negotiation between several gas gatherers, a feature made possible thanks to the Company's new infrastructure development.

Unlike previous contracts, the new agreements allow AusTex to shift the sale of its gas to another gas gatherer in the event that the pressure in the current gathering pipelines rises above a point that would otherwise inhibit AusTex's gas production. It is anticipated that this flexibility will provide the Company with a more stable source of gas off-take and create an increased incentive for the gatherers to keep their infrastructure growing in line with AusTex's production.